Can she sweeten Sony Sugar?
IN rare twist of events, the government has sent out yet another clear signal confirming its commitment to streamline management capacity in the sugar sector with the appointment of the first ever lady managing director at South Nyanza Sugar Company Limited.
In a historic move, the Cabinet Secretary for Agriculture, Livestock and Fisheries Mr Felix Koskei has confirmed the appointment of Ms Jane Pamela Odhiambo as the new Managing Director at the South Nyanza Sugar Company Limited (SonySugar) based in Awendo Township, Migori County.
The confirmation is contained in a special issue of the Kenya Gazette dated 30th May 2014 and effectively heralds the passing of an era with Ms Odhiambo now assuming office as the first ever woman to sit at the management helm of a public owned sugar miller.
While welcoming her appointment, Ms Odhiambo, a veteran marketing and business development expert pledged to unveil a robust growth plan for the sugar miller in coming days. “The appointment celebrates the intellectual acumen of all women and I will be sparing no energy to ensure that SonySugar delivers against its mandate,” Ms Odhiambo assured.
She added: “In coming days, we shall be unveiling a new business development strategy for SonySugar geared at facilitating growth through product diversification and cost efficiency.”
A graduate of the University of Nairobi and currently undertaking her PhD in Global Business Management, Ms Odhiambo has previously worked at Kenya Breweries Limited (KBL) and has been serving as the Acting Managing Director at SonySugar. Prior to her appointment as the Acting Managing Director last August, she had been serving as the sugar miller’s head of marketing and business development and is credited with the development of the SonySugar brand.
With her appointment as the substantive Managing Director, Ms Odhiambo now takes over the leadership mantle from Mr. Paul Odola with a clear brief to oversee the sugar miller’s transformation.
Of key concern going forward for Ms Odhiambo and the team is to prepare the state owned sugar miller for privatization. Sony Sugar is one of the five public sector owned sugar companies earmarked for privatization according to a July 2013 report on the implementation status of the Comesa sugar safeguard. Others that are earmarked for privatisation and where the cabinet has already approved the go-ahead are Chemelil Sugar Company, Nzoia Sugar Company Ltd, Muhoroni Sugar Company Ltd and Miwani Sugar Company. The companies posted a collective loss of Sh6.1 billion in the year to June 2014.
Ms Odhiambo is also taking over the helm of the sugar miller at a time when the country is facing a big threat from cheap imports from the region that have completely weighed down the fortunes of the country’s sugar sector. Kenya’s potential demand is approximately 800,000 metric tonnes. However, the country’s domestic production has historically hovered around 550,000 metric tonnes, leaving a net deficit to be filled by imports of approximately 250,000 metric tonnes. But speculation has been high that the country is importing more than is required putting into risk the livelihoods of farmers who depend on sugar.
Earlier this year, Kenya once again won an extension of the special safeguards on the importation of duty-free sugar from the Common Market for Eastern and Southern Africa (Comesa), giving the country more time to complete reforms in the ailing industry. The decision allows Kenya to limit the entry of imported sugar to 350,000 tonnes needed to meet the annual production deficit.
With the expiry of the safeguard ending in just under an year’s time from now and with the likelihood that another extension will not be granted, the industry must come up with clear measures to ensure that it remains afloat even after the duty free imports are allowed. Kenya had by end of last year exceeded the maximum allowable safeguard duration of 10 years, having requested and got extensions three times.
Also on the table of Ms Odhiambo will be how to contain the rising menace of cane poaching from rival sugar companies as rogue factories offer counter prices to farmers. Established in 1976, SonySugar, located in Migori County serves over 25,000 cane farmers in four counties – Kisii, Migori, Homabay and Narok. The South Nyanza cane growing belt covers Homabay, Gucha, Transmara, Kuria, Migori, Uriri, Rongo, Kisii South, Ndhiwa and Awendo.
Through an inter-ministerial programme covering the Ministry of Industrialization and Enterprise Development and that of Agriculture, Livestock and Fisheries, the government has outlined a strategy to transform government industries in the sugar sector. The strategy is part of the government’s job creation and industrialization road map geared at increasing Kenya’s manufacturing base to 20 per cent of GDP up from the current 9 per cent by the year 2020. The strategy also seeks to create an additional five million jobs.
